Core Insights - The increasing frequency and severity of natural disasters due to climate change necessitate the importance of catastrophe insurance as a risk management tool, providing over 20 trillion yuan in risk coverage for residents in 2024 [1][3] - The development of catastrophe insurance in China is supported by government policies aimed at expanding coverage and improving the insurance system [7][8] Group 1: Importance of Catastrophe Insurance - Catastrophe insurance plays a crucial role in disaster risk management and economic stability, with over 70% of cities and more than 50% of the population located in disaster-prone areas [3] - In 2024, the catastrophe insurance community provided 22.36 trillion yuan in risk coverage to 64.39 million households [3] Group 2: Current Challenges - The coverage of catastrophe insurance is limited, with voluntary participation leading to low awareness and willingness to pay among residents, resulting in varying coverage rates across regions [4] - The insurance industry in China only covers about 10% of losses from major disasters, compared to the global average of 40% [5] Group 3: Technological and Structural Improvements - There is a need for improved data sharing and risk assessment models, as current systems are fragmented across various government departments, hindering effective risk evaluation [6] - The establishment of a national catastrophe data sharing platform and investment in high-precision catastrophe risk models are recommended to enhance the effectiveness of catastrophe insurance [8] Group 4: Future Development - Recent policy initiatives, such as the "National Ten Articles" and the "National Emergency Response Plan," emphasize the expansion of catastrophe insurance coverage and the integration of commercial insurance into disaster management [7] - The insurance industry is encouraged to adopt flexible product designs and learn from successful international models to broaden the scope of coverage [7][8]

Core Viewpoint - The increasing frequency and severity of natural disasters due to climate change necessitate the expansion and enhancement of catastrophe insurance as a critical tool for risk management and disaster mitigation [1][3]. Group 1: Importance of Catastrophe Insurance - Catastrophe insurance has played a significant role in disaster risk management, providing over 20 trillion yuan in risk coverage for residents in 2024 [1]. - The insurance community has provided 22.36 trillion yuan in catastrophe risk protection to 64.39 million households in 2024, highlighting its extensive reach [3][4]. - The rapid response and compensation processes, as demonstrated by the swift payout of 340 yuan to a disaster-affected resident, illustrate the effectiveness of catastrophe insurance in safeguarding lives and property [2]. Group 2: Coverage and Depth of Catastrophe Insurance - Despite the progress, the coverage and depth of catastrophe insurance need further expansion, as the current penetration rate is low, with only about 10% of disaster losses covered by insurance compared to a global average of 40% [4][5]. - The voluntary nature of residential catastrophe insurance limits its uptake, with varying coverage rates across different regions [4][5]. - Local pilot programs have shown success in adapting catastrophe insurance to specific regional needs, but broader implementation is still required [4][6]. Group 3: Technological and Policy Developments - The insurance industry is encouraged to invest in technology to improve risk assessment and data sharing, which are currently hindered by fragmented data across various departments [5][7]. - Recent policy initiatives, such as the "National Ten Articles" and the "Overall Emergency Plan for Sudden Incidents," emphasize the importance of catastrophe insurance and aim to enhance its development [6][7]. - The establishment of a unified catastrophe data sharing platform and the development of high-precision catastrophe risk models are recommended to improve the effectiveness of catastrophe insurance [7].